Richard Vanderford of The Wall Street Journal reports that a move by the US will block many imports from using a trade provision critics say is being unfairly abused. He writes:
The Biden administration will restrict the use of a trade provision that lets China-founded e-commerce giants such as Temu and Shein more easily ship to the U.S., a move that comes amid a groundswell of bipartisan pressure to close what critics regard as a loophole.
The administration said Friday it will take executive action to try to stop a surge in trade under what is known as the de minimis exemption.
The administration said under a new rule it intends to propose, parcels containing merchandise that would be subject to tariffs under various sections of trade law won’t be eligible for de minimis treatment. About 70% of Chinese textile and apparel shipments are covered by those tariffs and now will have to go in through a more formal entry method, administration officials said. […]
Some business groups, including those representing shippers, have come out intensely against the efforts to change the de minimis rules.
Getting rid of the exemption risks retaliation from other countries, which could affect U.S. exporters, said John Pickel, the senior director of international supply chain policy at the National Foreign Trade Council. The group’s board includes Amazon.com along with FedEx and DHL.
The exemption also saves small businesses money when they import and benefits low-income communities, Pickel said.
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